Stocks slipped as the Fed rose 0.75%, Powell pushed back against the pivot

US stocks fell in choppy trading Wednesday afternoon after the Federal Reserve moved to… Raising its standard policy rate By 75 basis points for the fourth time in a row – on par with market expectations – and President Jerome Powell’s comments suggest that the US central bank is unlikely to make a shift in policy anytime soon.

S&P 500 Index (^ Salafist Group for Preaching and Combat) is down 1.2%, while the Dow Jones Industrial Average (^ DJI) erases 200 points, or 0.6%. Nasdaq Technology Heavy Vehicle (^ ninth) down 1.7%.

Stocks initially rose after the announcement but lost momentum after Powell in his post-meeting press conference refuted the idea of ​​a pivotal policy in the near future, stressing that it was “too early” to consider a pause in interest rate hikes. Powell said the Fed still had “a ways to go” and suggested that “the final level of interest rates will be higher than previously expected.”

“The November FOMC meeting is not about the November rate policy decision,” Bank of America analysts led by Michael Gaben said in a note to clients. “Instead, the meeting is about future policy price guidance and what to expect in December and beyond.”

Any indications from the central bank regarding possible easing in the pace of tightening will do Serves as a tailwind for the main indicatorsWhich Last month closed up On expectations about the policy focus fueled by the rhetoric from some officials that interest rate increases will be curtailed, and global concerns that tightening could lead to financial instability. But some strategists have dismissed the notion that a turn in the Fed’s course is imminent, with inflation and wages still rising.

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“So far, inflation and labor market benchmarks have not been met, so Mr. Powell cannot pre-announce any intention to switch to slower rate increases without contradicting what he said just six weeks ago,” Shepherdson said in comments via email. “Evidence that the pressure in the pipeline is fading is ample, but it has not yet reached the numbers that the Fed Chairman has clearly said on several very important occasions, which is the actual core inflation data.”

WASHINGTON, DC – OCTOBER 3: US Federal Reserve Chairman Jerome Powell listens during a meeting with the US Treasury on October 3, 2022 in Washington, DC. (Photo by Anna Moneymaker/Getty Images)

On the US economic data front Private payroll saw an unexpected increase In October, according to the ADP’s national employment report, which serves as an incomplete lift-off of the government’s monthly jobs report due on Friday. Wednesday’s data indicates that the labor market remains tight despite the Federal Reserve’s efforts to curb growth in its war against inflation, suggesting continued interest rate hikes.

And in corporate news, Estée Lauder shares (EL) sank more than 7% after the company cut its full-year forecast. cosmetic maker Cited currency headwinds and lockdowns in Chinaand some US retailers are taking cosmetics and perfumes off their shelves amid fears of slowing demand.

Basic (Para) Shares fell as much as 12% after The company reported a profit On investments in content, the weakness in advertising revenue also affected the quarter, he said.

Advanced Micro Devices (AMD) Shares rose 3% after The chip maker reported better earnings than fear The results, even with fourth-quarter revenue guidance, are lower than Wall Street estimates.

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The dating app Tinder on a mobile phone is shown in this illustration taken on September 1, 2020. The photo was taken on September 1, 2020. REUTERS / Akhtar Soomro / Illustration

The dating app Tinder on a mobile phone is shown in this illustration taken on September 1, 2020. The photo was taken on September 1, 2020. REUTERS / Akhtar Soomro / Illustration

Tinder, Hinge and OkCupid owner Match Group (MTCH) Shares rose 5% after financial data showed Revenue beat analyst estimates The company has vowed to control costs to prepare for a lackluster economic outlook.

Mondelez International (MDLZ) Shares rose 2% after the Oreo maker raised its full-year forecast for sales and profits and noted that shoppers continued to indulge in snacks and drinks despite the inflation crisis.

Meanwhile, Airbnb shares (ABNB) fell nearly 10% after the company warned of Growth slowed in the fourth quarter Consumers are fed up with expensive rents and prefer urban and cross-border destinations.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed

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